ORIGINATION FEE

An origination fee is a fee for establishing a new loan. This fee is paid to the bank or your loan broker for his or her services in originating the loan.The fee usually varies from 0.5% (half a point) to 2% (two points) of the loan amount, depending whether the loan was originated in the prime or the subprime market.An origination fee of 2% on a $200,000 loan is $4,000. In some cases, one has to pay points plus origination fees.
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Noun
1. a fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan
(hypernym) fee